Identifier
Created
Classification
Origin
09ASHGABAT1084
2009-08-31 09:40:00
UNCLASSIFIED//FOR OFFICIAL USE ONLY
Embassy Ashgabat
Cable title:
TURKMENISTAN: CHRYSLER DISTRIBUTOR TRIES TO RE-ENTER SUV
how-toVZCZCXRO4822 PP RUEHAG RUEHAST RUEHBI RUEHCI RUEHDBU RUEHDF RUEHIK RUEHLH RUEHLN RUEHLZ RUEHNEH RUEHPW RUEHROV RUEHSK RUEHSL RUEHSR RUEHVK RUEHYG DE RUEHAH #1084 2430940 ZNR UUUUU ZZH P 310940Z AUG 09 FM AMEMBASSY ASHGABAT TO RUEHC/SECSTATE WASHDC 3368 INFO RUCPDOC/DEPT OF COMMERCE WASHDC PRIORITY RUEATRS/DEPT OF TREASURY WASHDC PRIORITY RUCNCLS/ALL SOUTH AND CENTRAL ASIA COLLECTIVE RUCNCIS/CIS COLLECTIVE RUCNMEM/EU MEMBER STATES COLLECTIVE RUEHAK/AMEMBASSY ANKARA 5598 RUEHBJ/AMEMBASSY BEIJING 3317 RUEHKO/AMEMBASSY TOKYO 3181 RUEHIT/AMCONSUL ISTANBUL 3841 RUCNDT/USMISSION USUN NEW YORK 1111 RHMCSUU/CDR USCENTCOM MACDILL AFB FL RUEHVEN/USMISSION USOSCE 3846 RUEAIIA/CIA WASHDC RHEFDIA/DIA WASHDC RHEHNSC/NSC WASHDC RUEKJCS/SECDEF WASHDC RUEKJCS/JOINT STAFF WASHDC
UNCLAS ASHGABAT 001084
SENSITIVE
SIPDIS
STATE FOR SCA/CEN; EEB
COMMERCE FOR EHOUSE
E.O. 12958: N/A
TAGS: PGOV EINV ECON ETRD TX
SUBJECT: TURKMENISTAN: CHRYSLER DISTRIBUTOR TRIES TO RE-ENTER SUV
MARKET
UNCLAS ASHGABAT 001084
SENSITIVE
SIPDIS
STATE FOR SCA/CEN; EEB
COMMERCE FOR EHOUSE
E.O. 12958: N/A
TAGS: PGOV EINV ECON ETRD TX
SUBJECT: TURKMENISTAN: CHRYSLER DISTRIBUTOR TRIES TO RE-ENTER SUV
MARKET
1. (U) Sensitive but unclassified. Not for public Internet.
2. (SBU) SUMMARY: Chrysler's official distributor in Central Asia,
Saitco, hopes to reenter the Turkmen automobile market. In 2002,
Saitco sold about 100 Dodge SUVs on contract through IPC Motors to
the Turkmen Government. Seven years later, Saitco plans to deal
directly with the Turkmen Government, instead of through a
middleman, in order to sell SUVs in a growing Turkmen niche market.
END SUMMARY.
3. (SBU) In 2002, Virginia-based Saitco managed to sell 100
vehicles, most of which were Dodge Durango SUVs, to the Turkmen
Government through the Gibraltar registered IPC Motors Company. At
that time, IPC was the sole supplier of cars to the Turkmen
Government. Most of the Saitco SUVs went to state-owned oil and gas
companies, which reserved those cars for their mid-level managers
and field engineers. When the Dodge Durangos arrived in Ashgabat,
they were the talk of the town. Their sheer size, power, and modern
exteriors made them easy to spot.
4. (SBU) Unfortnately, admiration for the American SUVs turned to
disappointment as some draw-backs were noticed. The automatic
transmission, low ground clearance, and extended wheel base
significantly limited the vehicles' off-road performance, and high
fuel consumption made driving them in the city costly, even for oil
and gas companies. But the most important reason the Durangos lost
popularity in Ashgabat was the drawn-out process of supplying spare
parts that Saitco had arranged through IPC Motors. Moreover,
purchasing spare parts through IPC Motors was more expensive than
ordering them from other vendors. As a result, most of 100 original
Durangos are parked in government parking spaces and garages, rarely
used.
5. (SBU) A Saitco representative told Embassy staff that the
company will again try to sell cars to the Turkmen Government,
particularly to the state-owned oil and gas companies as they are
the only potential clients who could place a large order. The
company representative also mentioned that Saitco will try to
establish direct contacts with the government without
intermediaries. Embassy staff recommended that Saitco consider
restoring the government's confidence by supplying spare parts for
the original 100 Dodge Durangos that remain idle in Ashgabat.
6. (SBU) COMMENT: Saitco will face tough competition from existing
suppliers of Toyota SUVs. If Saitco approaches the state oil and
gas companies with a project aimed at repairing the previously
delivered vehicles, there might be a chance that the companies will
give Saitco a second chance. Since Russia stopped purchasing gas in
April, state gas companies are looking for ways to cut expenses.
Getting the Durangos back on the road at a limited cost might
provide the Turkmen with an incentive to buy American once again.
END COMMENT.
MILES
SENSITIVE
SIPDIS
STATE FOR SCA/CEN; EEB
COMMERCE FOR EHOUSE
E.O. 12958: N/A
TAGS: PGOV EINV ECON ETRD TX
SUBJECT: TURKMENISTAN: CHRYSLER DISTRIBUTOR TRIES TO RE-ENTER SUV
MARKET
1. (U) Sensitive but unclassified. Not for public Internet.
2. (SBU) SUMMARY: Chrysler's official distributor in Central Asia,
Saitco, hopes to reenter the Turkmen automobile market. In 2002,
Saitco sold about 100 Dodge SUVs on contract through IPC Motors to
the Turkmen Government. Seven years later, Saitco plans to deal
directly with the Turkmen Government, instead of through a
middleman, in order to sell SUVs in a growing Turkmen niche market.
END SUMMARY.
3. (SBU) In 2002, Virginia-based Saitco managed to sell 100
vehicles, most of which were Dodge Durango SUVs, to the Turkmen
Government through the Gibraltar registered IPC Motors Company. At
that time, IPC was the sole supplier of cars to the Turkmen
Government. Most of the Saitco SUVs went to state-owned oil and gas
companies, which reserved those cars for their mid-level managers
and field engineers. When the Dodge Durangos arrived in Ashgabat,
they were the talk of the town. Their sheer size, power, and modern
exteriors made them easy to spot.
4. (SBU) Unfortnately, admiration for the American SUVs turned to
disappointment as some draw-backs were noticed. The automatic
transmission, low ground clearance, and extended wheel base
significantly limited the vehicles' off-road performance, and high
fuel consumption made driving them in the city costly, even for oil
and gas companies. But the most important reason the Durangos lost
popularity in Ashgabat was the drawn-out process of supplying spare
parts that Saitco had arranged through IPC Motors. Moreover,
purchasing spare parts through IPC Motors was more expensive than
ordering them from other vendors. As a result, most of 100 original
Durangos are parked in government parking spaces and garages, rarely
used.
5. (SBU) A Saitco representative told Embassy staff that the
company will again try to sell cars to the Turkmen Government,
particularly to the state-owned oil and gas companies as they are
the only potential clients who could place a large order. The
company representative also mentioned that Saitco will try to
establish direct contacts with the government without
intermediaries. Embassy staff recommended that Saitco consider
restoring the government's confidence by supplying spare parts for
the original 100 Dodge Durangos that remain idle in Ashgabat.
6. (SBU) COMMENT: Saitco will face tough competition from existing
suppliers of Toyota SUVs. If Saitco approaches the state oil and
gas companies with a project aimed at repairing the previously
delivered vehicles, there might be a chance that the companies will
give Saitco a second chance. Since Russia stopped purchasing gas in
April, state gas companies are looking for ways to cut expenses.
Getting the Durangos back on the road at a limited cost might
provide the Turkmen with an incentive to buy American once again.
END COMMENT.
MILES